TekSavvy urges CRTC to deliver real price relief for internet services--for consumers in all regions of Canada
ISP says regulator's interim decision on internet services flawed by high wholesale rates and regional restriction to Ontario and Quebec
CHATHAM, ON, Nov. 7, 2023 /CNW/ - Yesterday's CRTC decision will require Bell and Telus to sell wholesale access to their fibre networks in Ontario and Quebec to smaller competitors (such as Solutions TekSavvy/TekSavvy Solutions Inc.) within 6 months.
While TekSavvy welcomes the prospect of finally offering consumers competitive choices for fibre internet services, the company has serious concerns with the regulator's decision at this time.
At the core of the CRTC's decision are the wholesale rates that Bell and Telus will charge smaller competitors for network access. The CRTC set those wholesale rates higher than many of the retail prices Bell and Telus charge their own customers. The wholesale rate is just one of several cost inputs that determine competitor pricing. These wholesale rates alone will preclude effective competition and deny consumers price relief for critical telecom services.
Second, the CRTC's interim decision is currently restricted only to Ontario and Quebec. In TekSavvy's view, there is no compelling reason to deny consumers in other regions of the country the benefits of competition for essential services, including in Telus' territory across the Western provinces and Bell's territories in Manitoba and Atlantic Canada.
"The large telcos are already selling fibre internet below the CRTC's new wholesale rates. As a result, those rates make competition virtually impossible," said Andy Kaplan-Myrth, TekSavvy's Vice President of Regulatory and Carrier Affairs. "As it stands, consumers will not benefit from meaningful price relief, despite the large telcos' decade long monopoly and Canada's ongoing cost-of-living crisis."
"Consumers in other regions are no less deserving of price relief and competitive choices than consumers in Ontario and Quebec," said Peter Nowak, TekSavvy's Vice President of Insight and Engagement. "We hope that the CRTC will act quickly to rectify the rates and expand this interim ruling to all regions."
TekSavvy further confirmed that it is not currently for sale and remains Canada's largest independent telecom service provider. TekSavvy looks forward to working with the CRTC to improve its interim decision and rates to finally deliver price relief to Canadians in 2024.
Based in Chatham, Ontario, TekSavvy is Canada's largest independent telecom service company. TekSavvy has been proudly delivering award-winning services and fighting for consumers' rights for more than 20 years. TekSavvy is committed to providing quality competitive choice and closing Canada's digital divide.
SOURCE TekSavvy Solutions Inc.
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